Sorry for the off-topic post, but as usual I leave my taxes til the last weekend and now I'm scrambling. I'm hoping some of you guys may have been in a similar situation and may be able to offer some advice:
I moved last year and made capital gains on the sale of the house. Of course, if the house is your primary residence, then you don't need to pay the capital gains tax on it. Normally however, I believe you still need to declare it as a "personal use property" disposition in Schedule 3 ("Capital gains and losses for 2006"). You can then (optionally?) fill out a T2091 to get a capital gains deduction to apply against the gains from the sale of your property.
My problem is this: I have significant capital losses in 2006, and also a big capital loss carried forward from 2005. Quicktax automatically applies the gains from my house against my losses, thereby reducing my carry-forward loss significantly. This might not be an issue if Quicktax had T2091 as one of its forms and took that into account, but it doesn't. Two issues I see:
1) I need to fill out a T2091 and hope that CRA figures everything out (which I'm sure they will eventually, but might take some back and forth)
2) When I run next years quicktax, it will carry forward the wrong value and I'm not sure if it's easy/possible to override without entering in everything from scratch.
So my question is: Can you just ignore entering in the sale of your house as a capital gain? When people sell their houses, do they declare this in their income tax as a capital gain? Since you get a deduction for the full amount if it's your principal residence (and apparently you don't even need to fill out a T2091 in that case), I'm wondering if it's even necessary to declare? If I don't declare it, I save myself the headaches noted above.
Thoughts?
I moved last year and made capital gains on the sale of the house. Of course, if the house is your primary residence, then you don't need to pay the capital gains tax on it. Normally however, I believe you still need to declare it as a "personal use property" disposition in Schedule 3 ("Capital gains and losses for 2006"). You can then (optionally?) fill out a T2091 to get a capital gains deduction to apply against the gains from the sale of your property.
My problem is this: I have significant capital losses in 2006, and also a big capital loss carried forward from 2005. Quicktax automatically applies the gains from my house against my losses, thereby reducing my carry-forward loss significantly. This might not be an issue if Quicktax had T2091 as one of its forms and took that into account, but it doesn't. Two issues I see:
1) I need to fill out a T2091 and hope that CRA figures everything out (which I'm sure they will eventually, but might take some back and forth)
2) When I run next years quicktax, it will carry forward the wrong value and I'm not sure if it's easy/possible to override without entering in everything from scratch.
So my question is: Can you just ignore entering in the sale of your house as a capital gain? When people sell their houses, do they declare this in their income tax as a capital gain? Since you get a deduction for the full amount if it's your principal residence (and apparently you don't even need to fill out a T2091 in that case), I'm wondering if it's even necessary to declare? If I don't declare it, I save myself the headaches noted above.
Thoughts?
